United posts record revenues
LONDON -- Fresh from winning a record-extending 20th English title, Manchester United showed it's successful off the pitch as well by posting record revenues while reducing its debts.
United said Thursday it is on course to generate more than 350 million pounds ($545 million) this season after earning a record 91.7 million pounds ($143 million) in the three months to March 31.
But the title triumph has come at a price, with the wage bill rising 25 percent year-on-year to 44.9 million pounds ($70 million) in the third quarter. Wages have risen due to the impact of new signings -- including Robin van Persie and Shinji Kagawa -- renegotiated contracts and the growth of United's commercial team, which also has a base in Hong Kong.
The club, which is owned by the American Glazer family, has reduced its debt to 367.6 million pounds ($572 million) -- a drop of 16 percent in nine months.
Net profit more than trebled year-on-year to 3.6 million pounds ($5.6 million) in the third quarter.
Red Devils executive vice-chairman Ed Woodward said: "Each of our three primary sectors - commercial, broadcasting and matchday - delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)." United's powerful commercial arm made a massive contribution to the results.
A rise of 31.9 percent on the corresponding three months last year means overall commercial income has gone up by 27.9 percent to ($178.3 million) over the full nine-month period.
The broadcast and matchday sectors show a 21.7 per cent and 34 percent increase on the corresponding three months respectively.
However, total operating expenses for the third quarter increased 18.6 percent year-on-year to 79 million pounds ($123 million).
Information from The Associated Press and Press Association was used in this report.